Indiana Michigan Power submitted a settlement agreement, significantly reducing the original requested rates for its Building the Future proposal.

The company proposed a 20% rate hike back in July 2017, saying it would help pay for higher operating costs.

RELATED: Indiana Michigan Power asking for almost 20 percent rate hike

I&M’s newly proposed overall request is for an increase of $96.8 million, or 7.26 percent, which stems from the company’s new ability to pass savings from the federal Tax Cuts and Jobs Act to customers. The monthly increase for a residential customer who uses 1,000 kilowatt hours would be $9.41, or 32 cents per day.

The agreement is subject to approval by the Indiana Utility Regulatory Commission (IURC).

I&M plans to establish new programs to help low-income customers and offer economic development incentives to communities.